Exhibit 99.1 Gemino Healthcare Finance, LLC and Subsidiary Consolidated Financial Statements December 31, 2017 and 2016




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Gemino Healthcare Finance, LLC and Subsidiary  Table of Contents December 31, 2017 and 2016  PageIndependent Auditors Report


1Consolidated Financial StatementsConsolidated Balance Sheet


3Consolidated Statement of Operations


4Consolidated Statement of Changes in Members
Equity


5Consolidated Statement of Cash Flows


6Notes to Consolidated Financial Statements


7




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LOGO Independent Auditors Report Board of Managers Gemino Healthcare Finance, LLC We have audited the accompanying consolidated financial statements of Gemino Healthcare Finance, LLC and Subsidiary, which comprise the consolidated balance
sheet as of December 31, 2017 and 2016, and the related consolidated statements of operations, changes in members equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures
selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the entitys preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion.  LOGO

1




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Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Gemino Healthcare
Finance, LLC and Subsidiary as of December 31, 2017 and 2016, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.  LOGO Philadelphia, Pennsylvania February 14, 2018  2




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Gemino Healthcare Finance, LLC and Subsidiary  Consolidated Balance
Sheet December 31, 2017 and 2016  2017


2016AssetsAssetsCash and cash equivalents

$
12,957,611


$
14,990,039Loans receivable, net of allowance of $944,935 and $1,001,079, respectively


87,299,916



92,863,789Accrued interest receivable


699,965



736,095Intangible asset - trade name


2,800,000



2,800,000Goodwill


5,663,531



5,663,531Furniture and equipment, net


43,968



23,702Deferred financing costs, net


1,024,468



1,324,312Other assets


94,717



88,390Total assets

$
110,584,176


$
118,489,858Liabilities and Members EquityLiabilitiesCredit facility payable

$
75,000,000


$
83,000,000Accounts payable and accrued expenses


1,824,185



1,793,277Accrued dividend payable


592,837



581,370Total liabilities


77,417,022



85,374,647Members EquityUnits, $1,000 par value, issued and outstanding 35,301 and 34,893, respectively


34,359,388



33,918,486Retained deficit


(1,192,234
)


(803,275
)Total members equity


33,167,154



33,115,211Total liabilities and members equity

$
110,584,176


$
118,489,858 See notes to consolidated financial statements  3




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Gemino Healthcare Finance, LLC and Subsidiary  Consolidated Statement
of Operations Years Ended December 31, 2017 and 2016  2017


2016Interest IncomeInterest income on loans

$
8,194,577


$
9,641,138Interest expense


(3,503,254
)


(3,378,279
)Net interest income


4,691,323



6,262,859Credit for Loan Losses


56,144



193,597Net interest income after credit for loan losses


4,747,467



6,456,456Other Income


3,194,400



3,633,196General and Administrative Expenses


(4,370,777
)


(5,527,594
)Net income

$
3,571,090


$
4,562,058 See notes to consolidated financial statements  4




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Gemino Healthcare Finance, LLC and Subsidiary  Consolidated Statement
of Changes in Members Equity Years Ended December 31, 2017 and 2016  Balance at December 31, 2015

$
32,621,745Additional capital contributions


51,340Dividends declared


(4,119,932
)Net income


4,562,058Balance at December 31, 2016


33,115,211Additional capital contributions


440,902Dividends declared


(3,960,049
)Net income


3,571,090Balance at December 31, 2017

$
33,167,154 See notes to consolidated financial statements  5




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Gemino Healthcare Finance, LLC and Subsidiary  Consolidated Statement
of Cash Flows Years Ended December 31, 2017 and 2016  2017


2016Cash Flows from Operating ActivitiesNet income

$
3,571,090


$
4,562,058Adjustments to reconcile net income to net cash provided by operating activities:Depreciation


15,854



16,654Amortization of deferred origination fees and costs


(690,255
)


(539,072
)Amortization of deferred financing costs


299,844



289,745Credit for loan losses


(56,144
)


(193,597
)Changes in assets and liabilities:Decrease in accrued interest receivable


36,130



166,042(Increase) decrease in other assets


(6,327
)


14,665Increase in deferred origination fees and costs, net


732,000



489,250Increase (decrease) in accounts payable and accrued expenses


72,908



(204,633
)Net cash provided by operating activities


3,975,100



4,601,112Cash Flows from Investing ActivitiesDecrease in loans receivable, net


5,578,272



24,069,583Purchase of furniture and equipment


(36,120
)


(13,768
)Net cash provided by investing activities


5,542,152



24,055,815Cash Flows from Financing ActivitiesRepayments of credit facility, net


(8,000,000
)


(15,500,000
)Financing costs paid and deferred for credit facility






(872,801
)Dividends paid


(3,948,582
)


(4,096,749
)Proceeds from contributed capital


398,902



51,340Net cash used in financing activities


(11,549,680
)


(20,418,210
)Net (decrease) increase in cash and cash equivalents


(2,032,428
)


8,238,717Cash and Cash Equivalents, Beginning


14,990,039



6,751,322Cash and Cash Equivalents, Ending

$
12,957,611


$
14,990,039Supplemental Disclosure of Cash Flow InformationInterest paid

$
3,170,797


$
3,108,074Supplemental Disclosure of Non-Cash Financing
ActivitiesIssuance of Units using long-term incentive plan accrual

$
42,000


$
 See notes to consolidated financial statements  6




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated
Financial Statements December 31, 2017 and 2016  1.
Description of Business Gemino Healthcare Finance, LLC (Gemino), a Delaware
limited liability company formed in December 2006, is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and mid-sized companies operating
across the U.S. in the healthcare industry. Geminos loans are primarily in the form of revolving lines of credit, secured by accounts receivable of the borrowers. The accounts receivable serving as collateral are primarily third party
obligations from government payers, such as Medicare or Medicaid, and commercial insurers. In certain cases, Gemino may provide senior
term loan financing to qualified borrowers in addition to a revolving line of credit. Senior term loans are typically secured by accounts receivable, all other assets of the borrowers and a pledge of the stock of the borrowers. Gemino Healthcare Funding, LLC (Gemino Funding), is a wholly-owned special purpose limited liability company, that purchases and
holds certain eligible loans and related property from Gemino. On September 30, 2013, Solar Senior Capital Ltd. (Solar),
a Maryland corporation, acquired a controlling interest in Gemino. The remaining interest is held by various employees of Gemino, through their investment in Gemino Management Investment, LLC.  2.
Summary of Significant Accounting Policies Principles of Consolidation The consolidated
financial statements include the accounts of Gemino and Gemino Funding (collectively, the Company). All significant intercompany balances have been eliminated in consolidation. Use of Estimates The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and to report amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
The allowance for loan loss represents an estimate that is particularly susceptible to material change. Cash and Cash Equivalents Cash and cash equivalents include funds deposited with financial institutions and short-term, liquid investments in money market
accounts with original maturities of three months or less. Loans Receivable and Income Recognition Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at
their outstanding unpaid principal balances less the allowance for loan loss and any deferred fees or costs. Commitment terms of the
Companys financing agreements generally range from two to five years with interest charged on a floating rate basis. Funding under revolving loan commitments is subject to the Companys estimation of the accounts receivable pledged as
collateral. Income on loans receivable is recognized using the simple interest method. The accrual of interest on loans is discontinued at
the time the loan is 90 days delinquent unless the loan is secured and/or in the  7




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  process of collection. Typically, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered
doubtful. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current interest income and all future proceeds received will generally be applied
against principal or interest, in the judgment of management. Loans are returned to accrual status when all principal and interest amounts contractually due are reasonably assured. Revolving loan origination fees and costs are deferred and amortized on a straight-line basis over the terms of the related loan commitments as
an adjustment to interest income on loans. Term loan origination fees and costs are deferred and amortized using either the effective interest method or the straight-line method over the life of the loan as an adjustment to interest income. The
straight-line method may be used for term loan facilities when it approximates the effective interest method. Other fees, such as collateral monitoring fees, unused balance fees and collateral examination fees, are recognized when the services are
provided. Termination fees are recognized when a loan is terminated. These other fees are included in other income. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect
all amounts due in accordance with the contractual terms of the loan agreement. Loans are evaluated for impairment by the Company based on an ongoing analysis of each borrowers repayment capacity, the value of the collateral support and the
strength of any guarantees. Loans identified as impaired are further evaluated to determine the estimated extent of impairment. Allowance for Loan Loss The allowance for loan loss represents the Companys recognition of the assumed risks of extending credit. The allowance is maintained at
a level considered adequate to provide for probable losses inherent in the loan portfolio. Management establishes a general portfolio reserve for unimpaired loans based on various factors including historical loss experience, the overall credit
quality of the loan portfolio, economic trends and conditions and the regulatory environment. The overall credit quality of the
Companys borrowers is reflected in the individual and weighted average credit risk ratings of the loans in the portfolio. Credit risk ratings for each borrower are established based on a number of qualitative and quantitative factors including
an assessment of management and strategy, historical and projected repayment capacity, collateral coverage and performance, financial condition and sponsorship, strength of guarantees and any contingencies. Specific allowances for loan losses on impaired loans are typically measured based on a comparison of the recorded carrying value of the loan
to the present value of the loans expected cash flow using the loans effective interest rate, the loans estimated market price or the estimated fair value of the underlying collateral, if the loan is collateral-dependent combined
with the strength of any guarantee arrangements. Specific allowances are recorded when the discounted cash flows, collateral value, or aggregate market price of the impaired loan is lower than the carrying value of that loan. Loans are charged off when collection is questionable and when the Company can no longer justify maintaining the loan as an asset on the
consolidated balance sheet. Loans qualify for charge off when, after thorough analysis, all possible sources of collection are determined to be insufficient to repay the loan. These include impairment of potential future cash flow, value of
collateral and/or financial strength of guarantors. Recoveries of previous charge-offs are recorded when received.  8




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  Goodwill and Intangible Asset Goodwill represents the excess of consideration paid for an acquired business over the fair value of the related assets acquired and
liabilities assumed. Intangible asset - trade name has an indefinite life. Goodwill and intangible asset - trade name arose from the acquisition of the Company on September 30, 2013 (Note 1). The Company is required to assess its goodwill and
indefinite-lived intangible asset for impairment annually, or more frequently if events or changes in circumstances indicate impairment may have occurred. The Company assesses its indefinite-lived intangible asset for impairment by comparing the carrying value of the asset to its fair value, and
assesses goodwill for impairment by comparing the carrying value of the Company to its fair value. The fair value of intangible asset - trade name is estimated using the relief from royalty method, which is an income approach based on the present
value of royalties the Company would theoretically have to pay to license the trade name from a third party. The fair value of the Company is estimated using a weighted average amount of the present value of expected future cash flows and the
adjusted market multiples of comparable companies. If the fair value is less than the carrying value, an impairment loss would be recorded. For the years ended December 31, 2017 and 2016, there were no impairments. Furniture and Equipment Furniture and equipment are recorded at cost, net of accumulated depreciation, and are depreciated on a straight-line basis over their
estimated useful lives ranging from three to five years. Deferred Financing Costs Deferred financing costs represents capitalized expenses incurred with debt financing transactions. The Company incurred and capitalized
$872,801 of deferred financing costs in 2016, in connection with its credit facility (Note 6). These costs are being amortized on a straight-line basis over the life of the related credit facility agreement as an adjustment to interest expense. Income Taxes The Company
is not subject to federal or state income taxes. Members of the Company have elected to report the taxable income or loss on their individual tax returns. Accordingly, no provision for income taxes has been recorded in the accompanying consolidated
financial statements. The Company applies authoritative guidance relating to the accounting for uncertain tax positions. Accordingly, a
provision for uncertain tax positions and related penalties and interest is recognized when it is more-likely-than-not, based on the technical merits, that the tax position will not be realized or sustained
upon examination by the appropriate taxing authority. Management determined there were no tax uncertainties that met the recognition threshold in 2017 and 2016. The Company files both federal and state income tax returns. The Company remains subject to examination by taxing authorities for the years
2014 and after. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers  9




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  (Topic 606) (ASU 2014-09). ASU 2014-09 provides a single comprehensive revenue recognition framework and supersedes existing revenue recognition guidance. Included in the new principles-based revenue recognition model are changes to the basis for
deciding on the timing for revenue recognition. In addition, the standard expands and improves revenue disclosures. In August 2015, FASB subsequently issued ASU 2015-14, Revenue from Contracts with
Customers (Topic 606): Deferral of the Effective Datewhich defers the effective date of ASU 2014-09. After the deferral, ASU 2014-09 is effective retroactively for
annual or interim reporting periods beginning after December 15, 2017, with early adoption permitted for reporting periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13,Financial InstrumentsCredit Losses (Topic 326) to replace the incurred loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is
applicable to the measurement of credit losses on financial assets measured at amortized cost, including loans receivable and held-to maturity debt securities. It also applies to
off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees, and other similar instruments. For the assets within the scope of CECL, a cumulative-effect
adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. This new standard will be effective for the Company for fiscal years beginning after December 15, 2019. The
Company is currently evaluating the impact this new standard will have on its consolidated financial statements. In January 2017, the FASB
issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350), which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill
impairment test. ASU 2017-04 is effective for the Companys annual and any interim goodwill impairment tests beginning in 2021, with early adoption permitted for annual or interim tests performed on
testing dates after January 1, 2017. The amendments included in this ASU are to be applied prospectively. The Company does not expect implementation of this new standard to have a material impact on its consolidated financial statements.  3.
Loans Receivable The following table shows the composition of loans receivable, net as
of December 31, 2017 and 2016:  2017


2016Revolving loans receivable

$
88,217,980


$
86,855,086Term loans receivable


699,667



7,640,833Total loans receivable


88,917,647



94,495,919Less allowance for loan losses


(944,935
)


(1,001,079
)Less deferred origination fees and costs, net


(672,796
)


(631,051
)Loans receivable, net

$
87,299,916


$
92,863,789  10




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  4.
Allowance for Loan Losses and Recorded Investment in Loans Receivables The following
table summarizes the activity in the allowance for loan losses by loan class for the respective years ended December 31, 2017 and 2016:  BeginningBalance


Charge-Offs


Recoveries


Provisions(Credits)


EndingBalance


EndingBalance:IndividuallyEvaluatedforImpairment


EndingBalance:CollectivelyEvaluatedforImpairmentAllowance for Loan Losses - December 31, 2017Revolving loans

$
924,671


$



$



$
13,267


$
937,938


$
66,081


$
871,857Term loans


76,408











(69,411
)


6,997







6,997Total

$
1,001,079


$



$



$
(56,144
)

$
944,935


$
66,081


$
878,854Allowance for Loan Losses - December 31, 2016Revolving loans

$
1,106,195


$



$



$
(181,524
)

$
924,671


$
49,252


$
875,419Term loans


88,481











(12,073
)


76,408







76,408Total

$
1,194,676


$



$



$
(193,597
)

$
1,001,079


$
49,252


$
951,827
 The following table summarizes the activity in the recorded investment in loans receivable by loan class
at December 31, 2017 and 2016:  EndingBalance


EndingBalanceIndividuallyEvaluatedforImpairment


EndingBalanceCollectivelyEvaluated forImpairmentLoans Receivables - December 31, 2017Revolving loans

$
88,217,980


$
1,732,196


$
86,485,784Term loans


699,667







699,667Total

$
88,917,647


$
1,732,196


$
87,185,451Loans Receivables - December 31, 2016Revolving loans

$
86,855,086


$
49,252


$
86,805,834Term loans


7,640,833







7,640,833Total

$
94,495,919


$
49,252


$
94,446,667  11




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  Credit Quality Indicators The following table summarizes the loan portfolio by the Companys internal credit rating (scale: 1 to 7) as of December 31, 2017 and
2016: Loans with a rating of 4 or better generally pose minimal risk to the Company as they exhibit, among other things, one or more of the following attributes: (1) secured collateral position; (2) satisfactory cash flows; and
(3) history of timely payment of debt obligations. Loans credit rated below 4 are considered watchlist loans; an overall degree of risk exists with these loans that warrants managements review each quarter.  December 31, 2017RevolvingLoans


Term LoansRated 4 or better

$
85,984,629


$
226,667Rated 5


501,155



473,000Rated 6


1,732,196



Total

$
88,217,980


$
699,667December 31, 2016Rated 4 or better

$
85,673,388


$
7,640,833Rated 5


1,132,446



Rated 6


49,252



Total

$
86,855,086


$
7,640,833   5.
Furniture and Equipment Furniture and equipment are comprised of the following at
December 31, 2017 and 2016:  2017


2016Computer software and equipment

$
60,159


$
65,345Furniture and fixtures


40,384



16,840Leasehold improvement


20,375



12,026Total


120,918



94,211Less accumulated depreciation


(76,950
)


(70,509
)Furniture and equipment, net

$
43,968


$
23,702 Depreciation expense was $15,854 and $16,654 for the years ended December 31, 2017 and 2016, respectively.  6.
Debt The Company had a four-year, non-recourse,
$110,000,000 secured revolving credit facility, which was expandable to $150,000,000 under its accordion feature. On May 27, 2016, the Company entered into a new $125,000,000 secured revolving credit facility with its existing lenders which
replaced the previously existing credit facility. The new credit facility has similar terms as compared to the previous credit facility, includes an accordion feature to increase to $200,000,000 and has a maturity date of May 27, 2020. Under
the terms of the credit facilities, the Company has made certain customary representations and warranties, and is required to comply with various covenants, including financial and reporting requirements and other  12




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  customary requirements for similar credit facilities. The credit facilities also include usual and customary events of default for credit facilities of this nature. Amounts available to borrow under the credit facilities are also subject to compliance with a borrowing base that applies different advance
rates to different types of assets in the Companys portfolio that are pledged as collateral. As of December 31, 2017 and 2016, there were principal borrowings of $75,000,000 and $83,000,000 outstanding, respectively, under the respective
credit facilities. As of December 31, 2017 and 2016, there were approximately $103,915,000 and $113,031,000 of eligible loans and related security pledged as collateral under the credit facilities, respectively. Interest on the credit facilities accrues at a variable rate per annum of one-month LIBOR plus 2.60% as
of December 31, 2017 and 2016, respectively (4.16% and 3.37% at December 31, 2017 and 2016, respectively), payable monthly. The Company also pays customary loan fees for the credit facilities.  7.
Commitments and Concentrations At December 31, 2017 and 2016, the Company has
committed facilities to its borrowers totaling approximately $176,332,000 and $186,360,000, respectively, of which approximately $87,414,000 and $91,864,000, respectively, was unused. Borrowers may borrow up to the lesser of (i) the committed
facility or (ii) the underlying collateral value multiplied by the advance rate. Of the unused committed facility amount at December 31, 2017 and 2016, borrowers could borrow up to approximately $17,842,000 and $22,064,000, respectively. At December 31, 2017 and 2016, the Company had one loan approximating 15% and 12% of the total loans receivable, respectively.  8.
Lease Commitments The Company leases its headquarters, regional sales offices and
equipment under non-cancelable operating leases, which expire at various dates through 2020. As of December 31, 2017, future lease payments under non-cancelable
operating leases, are as follows:  Years ending December 31:2018

$
134,5152019


129,9762020


10,750Total

$
275,241 Total rent expense for all leases amounted to approximately $158,000 and $157,000 for the years ended
December 31, 2017 and 2016, respectively.  9.
401(k) Savings Plan The Company has a savings incentive plan covering substantially all
employees of the Company. Contributions are currently made by the Company in an amount equal to 100% of the first 5% of employee contributions after the employee has completed three months of continued employment. The Companys contribution for
the years ended December 31, 2017 and 2016 was approximately $152,000 and $144,000, respectively.  13




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  10.
Long-Term Incentive Plan The Company has a Long-Term Incentive Plan (LTIP
Plan) that provides for an annual bonus pool to employees based on the Company achieving certain performance criteria. For the years ended December 31, 2017 and 2016, the Company has expensed approximately
$-0- and $167,000, respectively, for the LTIP Plan.  11.
Fair Value Disclosure Management uses its best judgment in estimating the fair value of
the Companys financial instruments; however, there are inherent weaknesses in any estimation technique. The estimated fair value amounts have been measured as of the Companys year-end and have not
been reevaluated or updated for purposes of these consolidated financial statements subsequent to that date. As such, the estimated fair value of these consolidated financial instruments subsequent to the reporting date may be different than the
amounts reported at year-end. These estimates are subjective in nature and include uncertainties and matters of significant judgment and, therefore cannot be determined with precision. Changes in assumptions
could significantly affect the estimates. There are three levels of inputs that may be used to measure fair values: Level1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the
ability to access as of the measurement date. Level2: Significant other observable inputs other than
Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level3: Significant unobservable inputs that reflect a companys own assumptions about the assumptions that
market participants would use in pricing an asset or liability. The following information should not be interpreted as an estimate of the
fair value of the entire Company, since a fair value calculation is only provided for a limited portion of the Companys assets and liabilities. The following methods and assumptions were used to estimate the fair values of the Companys
financial instruments as of December 31, 2017 and 2016: Cash and cash equivalents- The carrying value approximates
fair value for cash and cash equivalents. (Level 1) Loan receivables, net - Fair values for loans are estimated using
market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. (Level 2) Accrued
interest receivable, accrued interest payable - Due to the short-term nature of these amounts, their carrying amounts approximate fair value. (Level 1) Credit facility payable - The fair value of the credit facility payable is determined from market sources based on current interest
rates at the balance sheet date for borrowers with similar credit ratings as the Company. (Level 2)  14




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Gemino Healthcare Finance, LLC and Subsidiary  Notes to Consolidated Financial Statements December 31, 2017 and 2016  The estimated fair values of the Companys financial instruments as of December 31,
2017 and 2016 are as follows:  2017Carrying Value


Fair ValueFinancial assets:Cash and cash equivalents

$
12,957,611


$
12,957,611Loan receivables, net


87,299,916



87,972,712Accrued interest receivable


699,965



699,965Financial liabilities:Credit facility payable


75,000,000



75,000,000Accrued interest payable


276,258



276,2582016Financial assets:Cash and cash equivalents

$
14,990,039


$
14,990,039Loan receivables, net


92,863,789



93,494,840Accrued interest receivable


736,095



736,095Financial liabilities:Credit facility payable


83,000,000



83,000,000Accrued interest payable


243,645



243,645 Except for the loans evaluated individually for impairment (Note 4), at December 31, 2017 and 2016,
respectively, the Company had no financial assets or liabilities measured at fair value on a nonrecurring basis.  12.
Subsequent Events The Company evaluated subsequent events for recognition or disclosure
through February 14, 2018, which was the date the consolidated financial statements were available to be issued.  15